46% of travel companies will increase ESG investing in 2024

As delegates return from COP28 in Dubai, global attention is focused on the actions needed to foster a more sustainable world.

Alongside global goals, travelers are increasingly demanding that travel experiences align with their sustainability values ​​and expectations.

Against this backdrop, Amadeus commissioned a study of 896 senior sustainability decision-makers across nine markets and seven segments of the travel industry to gain insight into ESG ambitions, priorities and challenges.

The study revealed that the global travel industry is optimistic about achieving the UNWTO's proposed goal of reaching net zero emissions by 2050. 89% of ESG decision makers believe that the sector can achieve its objective. Of that 89%, 36% believe it is possible to achieve it without any adjustments, while 53% believe it is possible, but that progress needs to be accelerated urgently.

The key to this is to focus on action. 90% of respondents have a step-by-step strategy that will help them achieve environmental sustainability goals or plan to implement it by 2024. 94% of respondents participate or plan to actively participate in social sustainability initiatives that impact beyond your organization. This commitment is accompanied by an increase in investment: 46% of respondents plan to invest more in 2024 than last year.

Despite optimism, the study identified obstacles to carrying out environmental, social and governance initiatives:
- 40% cited cost as the biggest obstacle to environmental commitments , followed
by the lack of technology and knowledge (30%), as well as the involvement of managers (25%).
- Regarding the initiatives social, the biggest obstacles are the lack of technology (32%), the
costs (31%), the lack of knowledge (28%) and the acceptance by managers (27% ).

- Regarding governance initiatives, the most important obstacles are lack of
knowledge (31%), cost (31%), lack of technology (29 %) and acceptance by the
managers (25%).

Data from Travel Sellers
46% of travel sellers have a step-by-step plan and 39% have a plan
put into practice. The top ESG priorities for travel sellers
are:
- Sustainability and social impact of the travel and tourism sector (25%)< /span>- Employee development, learning and growth (21%)
- Employee health, safety and well-being (24%)

93% of travel marketers making ESG decisions believe technology will be important to achieving their goals.

Generative AI interfaces, access to data to personalize all stages of a journey and advanced search capabilities were selected by 33% as the technologies with the greatest potential to accelerate the achievement of environmental sustainability goals. In this sense, business travel agencies were more receptive to generative AI (selected by 37%) than leisure travel agencies (28%). Regarding social sustainability, 39% say that technology will improve access to travel by integrating technology into travel.

While travel sellers are optimistic, more guidance is needed on cross-regional standards (selected by 45%), sustainability-related regulations (40%), and carbon emissions calculation methodologies (39%).

In particular, the study highlights the clear and recognized role of technology in helping the sector achieve its objectives. 92% of respondents indicated that technology is important in helping organizations achieve environmental sustainability goals, and 91% said the same for social goals. Artificial Intelligence and Virtual Reality were especially important:

- 33% of respondents highlighted generative AI initiatives as the technology with the greatest potential to accelerate environmental sustainability, as it can guide travelers towards more sustainable options throughout the traveler's journey.< /span>- The 38% said they can help drive social progress by improving travel access through accessibility technology integrated into public transportation, at the airport or on a flight.
- 31% said technologies that drive improvements in operational efficiency, as well as access to data for true personalization, would be important.

Ultimately, there is still work to do for the sector to meet its sustainability ambitions; 37% of ESG decision makers recognized that greater access to technological solutions is necessary. Those who considered it unlikely to meet their objectives within the established time frame highlighted the need for greater collaboration across the sector (33%).

"As the travel industry continues to grapple with the complexity of meeting ESG goals, I am encouraged by the optimism and commitments being made, from investments to strategic planning and technology solutions. At Amadeus, we are working to integrate ESG into the core of our business, supporting travel players on their path to greater efficiency and enabling travelers to make more informed decisions. Together, we can make travel more sustainable," says Jackson Pek, SVP and Group General Counsel, Amadeus.

Source: Amadeus.